New luxury tax tariffs on sales of motor vehicles

On 19 March 2014, the government issued Regulation No.22 of 2014 on Amendments to Government Regulation No.41 of 2014 on Tax on Motor Vehicles which are subject to Luxury Tax. The new regulation came into force 30 days after the date of its issuance. The amendments affect luxury goods sales tax (Pajak Penjualan Barang Mewah or PPnBM) for vehicles with certain specifications. Before the issuance of Regulation No. 22, the tariffs ranged from 10% to 75%. Under Regulation No.22, the highest PPnBM tariff is now...